Sub Prime Prime Time

Last night I sat down with my 4 year old son and watched the House Finance committee discuss the subprime meltdown. Then I read the headlines. There were complaints of "no one giving a straight answer ' when the questions were leading. Headliners were thrown out by politicians seemingly looking for them.

Once again I was amazed at what was considered news and what was lacking. The most profound comments to me came from  US Congressman David Scott. What he had to say was pretty much by-passed by the major media. In fact I searched on his name and the topic he discussed and did not get a single reference to todays hearings.

His profound statement did not place blame on the sub prime lenders, although many did and had reason to. It did not place blame on unscrupulous mortgage brokers, although they have had a part to blame. He didn't even place the blame on greedy borrowers.

What he suggested is that going forward we take a serious look at Financial Literacyin America, especially in the under-served minority communities. What a revolutionary idea!! Teach people to make wise decisions!! I applaud Mr. Scott. The problem is at hand and will eventually work itself out. What he proposes could very well prevent the next crisis from happening, or at least for those who take him seriously.

My challenge to us, real estate professionals and borrowers, is to get educated on Financial Literacy and to educate our clients. I'm not speaking of Fiscal Literacy, an advanced mortgage and financial planning strategy, I'm speaking of plain old common sense, financial literacy.

Below are several links to help you get started: 

FDIC Money Smart an adult education program that provides free training. I sent off for the material and hope to partner with a Hispanic Realtor to teach this class.

MyMoney.gov website Title V of the Fair and Accurate Credit Transaction Act (FACT Act) established the Financial Literacy and Education Commission (Commission) with the purpose of improving the financial literacy and education of persons in the United States. Take their 20 question quiz and see how you did. I got 18 out of 20.

Here's a link to a book that will help as well. I haven't read it yet but will be purchasing it myself.

 Saving and Investing: Financial Knowledge and Financial Literacy that Everyone Needs and Deserves to Have!

 Here's an opportunity to be part of the solution instead of the problem.

Larry Morris is a loan Officer with Equipoint Financial Network in Newberg, Oregon. He specializes in relocations and Sherwood, Oregon neighborhoods. He can be reached at larry.morris@equipoint.com. His website is www.PDX-Mortgage.com. This material is copy protected 2007 by Larry Morris, Mortgage News that Matters. All Rights Reserved